Thailand opens the door to cryptocurrencies: Tourists will be able to spend with digital assets

Thailand opens the door to cryptocurrencies: Tourists will be able to spend with digital assets

Thailand is embarking on a journey to modernise its financial system and accept digital assets. The country has announced ambitious plans that could change the way tourists and investors use cryptocurrencies, while strengthening the stability and transparency of its capital markets.

Relaxing rules for tourists and cryptocurrencies

Deputy Prime Minister and Finance Minister Pichai Chunhavajira made the public announcement during an investment seminar in Bangkok on May 26. The plan involves allowing tourists to pay with cryptocurrencies via credit cards, with merchants receiving Thai baht without having to deal with complex crypto transactions directly at the time of purchase. The move is intended to boost tourism development and modernise the financial infrastructure.

Pilot projects are expected to be launched soon, once the necessary infrastructure and regulatory controls are in place. This model avoids the direct use of local currency in transactions, reducing risks to the stability of the Thai baht. "This approach can be implemented immediately if the supporting conditions are met," Pichai said.

Regulatory reform and market unification

In addition to allowing cryptocurrency payments, Thailand is embarking on sweeping reforms to its financial laws. Currently, the rules regarding traditional capital markets and digital assets are regulated separately, which complicates the development of innovation and market integration.

The government is also reviewing outdated laws that restrict investments by large funds and institutions, such as life insurance companies, which are now limited to holding government bonds. The new laws should pave the way for greater involvement in private assets and equity markets, thereby increasing the liquidity and competitiveness of Thailand's financial sector.

Promoting digital assets and innovation

Minister Pichai expressed clear support for digital assets and stressed the need to put in place rules that allow innovation without jeopardising the country's financial stability. Key initiatives include the "G-Tokens" project - blockchain-based tokens to enable retail investors to purchase government bonds in fractional units. The move is intended to boost returns to savers and strengthen the global prestige of Thai sovereign debt.

It was also announced in May that Thailand's Ministry of Finance plans to issue $150 million worth of digital investment tokens, allowing the general public to invest in government bonds through tokenization. The move follows the securities regulator's plans to launch a tokenised securities trading system, which is intended primarily for institutional investors.

The future of the Thai financial market

Thailand is thus on course to become one of the leading regional centres for innovation in digital assets and capital markets. The combination of cryptocurrency promotion, regulatory reform and the adoption of modern technology is opening up new opportunities not only for tourists and investors, but also for the entire financial sector.

This strategy shows that Thailand is committed to seizing the opportunities presented by the digital age, while maintaining stability and confidence in its financial system. If the plans can be successfully implemented, this could be the beginning of a new era where digital assets will be a common part of not only tourism, but also investment and finance in this dynamic Asian country.

*This is not an investment recommendation.

Coingarage team